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To: Sarkie who wrote (260)	2/12/2000 12:55:00 PM
From: KLP	Read Replies (1) \| Respond to of 753

Tech Fever Sweeps European Markets --News article go2net.com Tech Fever Sweeps European Markets By Julia Hayley Feb 11 1:39pm ET MADRID (Reuters) - Fervent demand for Internet shares sent stock markets soaring across Europe on Friday, with blue-chip indices in Spain and Italy hitting all-time highs and Germany's technology market also soaring into unknown territory. In Italy, shares in portal operator Seat Pagine Gialle (SPG.MI) skyrocketed an effective 90 percent before being suspended in pre-bourse trade after news of a merger with Telecom Italia's (TIT.MI) Internet service provider Tin.it. In Spain, Internet upstart Terra Networks (TRR.MC) soared nearly the maximum allowed 15 percent to a new high of 137.10 euros -- more than ten times its IPO price in November giving it a market value on a par with Spain's two biggest banks. Telecoms group Telefonica (TEF.MC) this week denied persistent rumors of a merger between Terra and its yellow pages unit TPI Paginas Amarillas (TPI.MC). But the news from Italy only revived the speculation, dealers said, and TPI shares jumped 14 percent. ``There are only two types of investors right now: those who have bought technology stocks and those who are going to buy them,' a trader in Madrid said. Spain's technology gains relegated traditionally dominant banks and oil stocks and some of the big blue chips fell as investors swapped holdings for anything Internet related. ``Technology stocks are in fashion everywhere but in Spain the phenomenon is very recent and there's still a shortage of paper so it's logical to see such strong demand,' a trader said. ``People are selling banks and utilities and buying the stocks that are in fashion,' another trader said. Spain's Ibex set a new intraday record based on the rise of only 10 technology and telecoms-related stocks, while the other 25 fell. The Italian deal was Europe's first equivalent of the Time Warner Inc(TWX.N)-America Online(AOL.N) merger, analysts said. ``The market is giving huge premiums to companies with the correct strategy, and the correct thing is to merge Internet access with content,' said David Freddi, Internet equity analyst at S&P Marketscope in London. ``If this happened in Italy, with its low Internet penetration, it means it's really time to get moving everywhere else in Europe,' he added. INTERNET COMPANIES TO QUOTE Spain on Thursday announced regulations for a separate stock market section for technology companies, along the lines of new German, French and British markets. A dozen of so Spanish Internet ventures are believed to be ready to tap investors' enthusiasm for anything with a dot com. Analysts said the craze for Internet stocks showed no signs of abating and mergers, like Italy's, would fuel it further. Terra's shares are now trading at 10 times their flotation price in November. ``Terra is expanding in Latin American and sooner or later it will merge with the yellow pages and media units of Telefonica which will give it a leading position in e-trade and in content,' said analyst Manuel Torres at brokers Ibersecurities. Dutch publisher VNU (VNUN.AS) rocketed almost 20 percent to new highs as dealers said it was the best bet for a link up with an Internet firm. Germany's leading Internet companies surged driving Frankfurt's Neuer Markt index for growth stocks over the 7,000-point mark for the first time ever.